Armstrong Earnings Surge, Sales Up Modestly

Lancaster, PA, Aug. 1, 2011 -- Armstrong World Industries reported that net income in the second quarter rose 41% over a year ago although net sales increased just 3%.

The firm reported net income of $37.9 million compared to $26.8 million a year ago. Net sales were $748.6 million vs. $724.8 million last year.

Operating income was $72.7 million, up 37.4% over the 2010 period.

Earnings per share rose from $0.46 t0 $0.64.

Operating income and net income both increased due to cost reduction actions initiated in 2010, Armstrong said.

"Volumes were down in most of our business reflecting the cautionary economic environment in which we continue to operate," said CEO Matt Espe.

"We were, however, able to achieve increased profitability through the continued execution of our cost savings plans, pricing ability, mix gains from new products and leverage of LEAN investments."

Sales of resilient flooring were basically flat at $274.7 million compared to $276.0 million last year.

Wood flooring sales were up 5% to $133.6 million from $127.2 million.

For the six months ended June 30, reported net sales were $1.43 billion compared to $1.38 billion in 2010.

Flooring industry analyst Stifel Nicolaus said "results were much weaker on volumes than we had modeled, yet earnings were in line due to very strong cost reduction efforts and a surprisingly good performance in the company’s wood flooring business unit."